Several states enacted legislation over the past 50+ years to stabilize rents in the multifamily investment space. These rent stabilized apartments typically rent for significantly less than market rates and require owners to follow a set of guidelines around raising rents and apartment maintenance.

Rent Stabilization Regulations

Before investing in a rent stabilized or rent controlled building, an investor should do specific research around how much rent can be charged and when and how units can be de-stabilized or de-controlled. Most municipalities provide guidelines online as a reference. Investors should also consider consulting an attorney to ensure that the previous owner followed the appropriate procedures around rents. Similarly, investors should ensure that their leases comply with the state and city guidelines.

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